Market Dynamics Are Changing
It has been a topsy-turvy ride on the stock exchange, as this graph shows. It also shows there is little point in being concerned about short-term movements. Since the middle of 2014 movements have been in a fairly narrow band, hovering between about 47 000 and 54 000. The moral of the story is one needs to invest for the medium to long term and not over react to short term market fluctuations.
Looking Back at the First Quarter of 2016
Is 2016 turning out to be an annus horribilis for investors and the country’s economy? Not necessarily, but it certainly was a bumpy ride during the first quarter. No-one promised it would be plain sailing, with the tide turning against emerging markets, interest rates joining inflation in an upward spiral, and the threat of a further credit downgrading facing the Republic.
Rand Rally Only a Brief Respite
The rand has been recovering some lost ground lately, but the rally is merely a brief respite from the pressures the currency is under, Business Day writes in an editorial. Click on the link to read the article “Rand Rally Only a Brief Respite”
ConCourt Ruling a Win for Investor Confidence
The highest court in the land asserted its independence in no uncertain terms when it ruled against President Jacob Zuma and the National Assembly on the Nkandla matter. This will encourage foreign investors, whose confidence in the independence of South Africa’s institutions was shaken after former finance minister Nhlanhla Nene’s removal in December, writes Hanna Ziadi for Moneyweb. Click on the link to read the article “Concourt ruling a win for investor confidence”
FTSE/JSE All Share Performance Chart
What goes down must go up….and down and up again. Much has been said about the volatility on world markets, and the accompanying graph shows the JSE is no exception. Over the past year the bulls and the bears battled it out on an almost monthly basis as the bourse was buffeted by both domestic and international factors. The good news is that, as shown by the performance table charting the last five years, medium to long term investors have scored handsomely. From the high of a return of 26.68 in 2012, to the low of a return of 5.13 last year, the JSE continues to show that shares must be part of your investment portfolio.
Can the Rand Recover?
Experience has taught us that the direction of the rand, how far, or when it will fall or rise against hard currencies such as the USD is notoriously difficult to predict. The last time the rand’s tumble was this dramatic was in 2001 when it collapsed from R7.60 to the USD to R13.84. Recently the rand’s fall has been more dramatic. There are differing views as to where the rand will go to from here. One is that we are in a period of sustained weakness for a while. Reasoning for this view is as follows: